Friday, August 16, 2019

WE will earn $3 trillion in revenue

"The We Company", formerly known as WeWork, just registered with the SEC to go public.  I think they missed their window of opportunity of getting fools with money to invest.  The company lost $4 billion over the last 3 years and will likely never be profitable.  But supposedly they will earn $3 Trillion, with a capital T, of revenue.  I'm trying to find the section that says that.

And here it is: "Data from CBRE Group and Cushman & Wakefield indicates that employers across 155 global cities for which data is available and in which we have existing or planned locations spend a weighted average of approximately $11,700 in occupancy costs per employee each year.  By applying the average employee occupancy costs to our potential member population of 149 million people in our existing 111 cities, we estimate a total opportunity of $1.7 trillion. Among the approximately 255 million potential members across our 280 target cities globally, we estimate a total opportunity of $3.0 trillion."

To restate this, they are focusing on 280 target cities globally [by the way I am very interested as to the list of cities].  In each city, they will host nearly 1 million "employee occupants" (255/280 = .91, so actually an average of 910,000 per city.  Each employee occupant will cost $11,700 per year, or almost $1,000 per month.   So 280 cities X 910,000 per city X $11,700 = $3 trillion of revenue.  Per Year.  At least they dream big.

So what are the cities, at least the 111 current ones?  And can they really get $10 billion of revenue per year from each of these cities?

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And here it is from https://www.wework.com/locations.  This has 124.

United States
Atlanta
Austin
Baltimore
Boston
Boulder
Charlotte
Chicago
College Park, MD
Columbus
Dallas - Fort Worth
Denver
Detroit
Houston
Indianapolis (coming soon)
Kansas City
Las Vegas
Los Angeles
Miami
Minneapolis
Nashville
New York City
Orange County
Orlando
Philadelphia
Phoenix
Pittsburgh (coming soon)
Portland
Raleigh-Durham
SF Bay Area
Sacramento
Salt Lake City
San Antonio (coming soon)
San Diego
Seattle
St. Louis (coming soon)
Tampa
Washington, D.C.

Argentina - Buenos Aires

Australia
Brisbane
Melbourne
Perth
Sydney

Belgium - Brussels

Brazil
Belo Horizonte
Brasilia
Porto Alegre
Rio de Janeiro
São Paulo

Canada
Calgary
Montreal
Toronto
Vancouver

Chile - Santiago de Chile

Colombia
Barranquilla
Bogotá
Medellín

Costa Rica - San José

Czech Republic - Prague

Denmark - Copenhagen

France - Paris

Germany
Berlin
Cologne
Frankfurt
Hamburg
Munich

Greater China
Beijing
Chengdu
Guangzhou
Hangzhou
Hong Kong
Nanjing
Shanghai
Shenzhen
Suzhou
Taipei
Wuhan
Xi'An

India
Bengaluru
Gurugram
Hyderabad (coming soon)
Mumbai
Noida
Pune

Indonesia - Jakarta

Ireland - Dublin

Israel
Be'er Sheva
Haifa
Herzliya
Jerusalem
Tel Aviv

Italy - Milan

Japan
Fukuoka
Kobe
Nagoya
Osaka
Tokyo
Yokohama

Malaysia - Kuala Lumpur

Mexico - Guadalajara
Mexico City
Monterrey

Netherlands - Amsterdam

Norway - Oslo

Peru - Lima

Philippines - Manila

Poland - Warsaw

Russia - Moscow

Singapore - Singapore

South Africa
Cape Town
Johannesburg

South Korea
Busan
Seoul

Spain
Barcelona
Madrid

Sweden - Stockholm

Thailand - Bangkok

United Arab Emirates
Abu Dhabi
Dubai (coming soon)

United Kingdom
Birmingham
Cambridge
Edinburgh
London
Manchester

Vietnam - Ho Chi Minh City

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